Over the past few months, Tesla’s valuation has slowly crept up on Ford’s and, at this point, the car/battery/solar company’s worth could surpass the model-T mainstay literally any second now…yep, aaaannyy second…
“HAS IT HAPPENED YET?”
No. But keep your peepers peeled people because, despite Ford winning the hearts of Americans for over a century, the teenage Tesla’s stock has grown 714% in the past 5 years while Ford’s fell 5%.
After all, the market never looks back
Frankly, US consumers don’t have much of a long-term memory either.
Sure, Ford’s investing heavily in its incubator and self-driving tech but their greatest profit margins still come from SUV and truck sales, and demand for those depends heavily on volatile gas prices.
And while Tesla’s $7B in revenue for 2016 is just a drop in the bucket compared to Ford’s $152B, it’s their future trajectory that has investors on the edge of their seats.
Critics say that Tesla’s insane valuation has less to do with their business model and more to do with Elon Muskrat’s sheer animal magnetism… But honestly, can you blame ‘em?